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Royal Mail shares deliver a new high

On their second day of conditional dealing, the stock jumped as much as 20p to 475p

Susan Thompson

October 14 2013, 3:46pm, The Times

Canaccord Genuity, the analyst, suggested that Royal Mail was significantly undervaluedPeter Macdiarmid/Getty Images

Shares in Royal Mail hit new highs today, with investors who bought £750 of stock holding a paper profit of more than £330 each.

On their second day of conditional dealing, the stock — which was priced at 330p by the Government and surged by more than a third to 455p on Friday — jumped as much as 20p to 475p in morning trading. Shares fell back slightly to 470p in late trading.

At 475p, shareholders of 227 shares made paper gains of £332 each.

Institutions, such as banks and hedge funds, as well as some retail investors who bought from stockbrokers, started trading on Friday, pushing the shares to 456p, up 38 per cent from the offer price.